Question

During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions:
October Transactions
Date	Transaction Description
Oct. 1	Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock.
Oct. 1	Paid the premium on a one-year insurance policy, $1,200.
Oct. 1	Paid the current month's store rent expense, $1,040.
Oct. 3	Purchased repair equipment from Conklin Company, $4,400. Paid $600 down and the balance was placed on account. Payments will be $200.00 per month for nineteen months. The first payment is due 11/1. Note: Use Accounts Payable for the Balance Due.
Oct. 8	Purchased repair supplies from McKenna Company on credit, $390.
Oct. 12	Paid utility bill for October, $154.
Oct. 16	Cash bicycle repair revenue for the first half of October, $1,362.
Oct. 19	Made payment to McKenna Company, $200.
Oct. 31	Cash bicycle repair revenue for the last half of October, $1,310.
Oct. 31	Declared and paid cash dividend of $800.

REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits - All of your Journal Entries should balance.

REQUIREMENT #2: Post the October journal entries to the following T-Accounts and compute ending balances.

REQUIREMENT #3: Prepare a trial balance for October in the space below.

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!   
a) One month's insurance has expired.     
b) The remaining inventory of repair supplies is $194.   
c) The estimated depreciation on repair equipment is $70.      
d) The estimated income taxes are $40.  

Requirement #5: Post the adjusting entries on October 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.

Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 31 in the space below.      
You will only be preparing the Income Statement, Statement of Retained Earning and the Balance Sheet.

Requirement #8: Prepare the closing entries at October 31 in the General Journal below. Hint: use the balances for each account which appear on the Adjusted    
Trial Balance for your closing entries.    

Requirement #9: Post the closing entries to the T-Accounts on the General Ledger worksheet and compute ending balances. Just add to the adjusted balances already listed.  

Requirement #10: Prepare a post-closing trial balance as of October 31 in the space below.

Answer 1

General Journal of Rawls Repair Corporation
Date	Account Titile	Ref	Debit	Credit
Oct-01	Cash A/c    Dr		$12000
	Common Stock			$12000
	(Began business in exchange for 1200 shares of 10)
Oct-01	Prepaid Insurance A/c    Dr		$1200
	Cash			$1200
	(Insurance premium paid in advance)
Oct-01	Prepaid Rent A/c   Dr		$1040
	Cash			$1040
	(Store Rent paid in first of the month)
Oct-03	Equipment A/c    Dr		$4400
	Cash			$600
	Accounts Payable			$3800
	(Equipment Purchased giving down payment balance on credit)
Oct-08	Supplies A/c    Dr		$390
	Accounts Payable			$390
	(Supplies purchased on credit)
Oct-12	Utility Expensee A/c     Dr		$154
	Cash			$154
	(Utility expense paid)
Oct-16	Cash A/c      Dr		$1362
	Service Income			$1362
	(Service revenue for first half of the month received)
Oct-19	Accounts Payable A/c    Dr		$200
	Cash			$200
	(Cash paid against credit purchase made of supplies)
Oct-31	Cash A/c     Dr		$1310
	Service Income			$1310
	(Second half of the month's service revenue received)
Oct-31	Dividend A/c      Dr		$800
	Cash			$800
	(Dividend declared and paid)

	Utility Expense
Dr		Cr
Date	Amount	Date	Amount
Oct-12	154
	154

	Cash
Dr		Cr
Date	Amount	Date	Amount
Oct-01	12000	Oct-01	1200
Oct-16	1362	Oct-01	1040
Oct-31	1310	Oct-03	600
		Oct-12	154
		Oct-19	200
		Oct-31	800
	10678

	Service Revenue
Dr		Cr
Date	Amount	Date	Amount
		Oct-16	1362
		Oct-31	1310
			2672

	Equipment
Dr		Cr
Date	Amount	Date	Amount
Oct-03	600
	3800
	4400

	Accounts Payable
Dr		Cr
Date	Amount	Date	Amount
Oct-19	200	Oct-03	3800
		Oct-08	390
			3990

	Dividend
Dr		Cr
Date	Amount	Date	Amount
Oct-31	800
	800

	Supplies
Dr		Cr
Date	Amount	Date	Amount
Oct-08	390
	390

	Prepaid Rent
Dr		Cr
Date	Amount	Date	Amount
Oct-01	1040
	1040

	Prepaid Insurance
Dr		Cr
Date	Amount	Date	Amount
Oct-01	1200
	1200

	Common Stock
Dr		Cr
Date	Amount	Date	Amount
		Oct-01	12000
			12000

Rawls Repair Corporation
UnAdjusted Trial Balance
For the period Ending Oct 31
Cash	10678
Supplies	390
Equipment	4400
Prepaid Insurance	1200
Prepaid Rent	1040
Common Stock		12000
Accounts Payable		3990
Service Income		2672
Utility Expense	154
Dividends	800
TOTAL	18662	18662

Adjustment Entries
a	Insurance Premium A/c Dr		$100
	Prepaid Insurance			$100
	Insurance premium paid for 1 year . 1 month insurance expired
	(1200 for 1 year, 100 for 1 month.)
b	Supplies Expense A/c    Dr		$196
	Supplies			$196
	Supplies purchased for $390. Remaning supplies $194. Then difference between 390 and 194 used as expense (390-194)
c	Depreciation on equipment A/c   Dr		$70
	Accumulated Depreciation			$70
d	Income Tax Expense A/c   Dr		$40
	Income Tax Payable			$40

		Supplies
	Dr			Cr
Date	Account Titile	Amount	Date	Account Titile	Amount
Oct-08	Accounts Payable	390		Supplies Expense	196
	End Bal	194

		Prepaid Insurance
	Dr			Cr
Date	Account Titile	Amount	Date	Account Titile	Amount
Oct-01	Cash	1200		Insurance Expense	100
	End Bal	1100

		Income Tax Expense
	Dr			Cr
Date	Account Titile	Amount	Date	Account Titile	Amount
	Income tax Payable	40
		40

		Income Tax payable
	Dr			Cr
Date	Account Titile	Amount	Date	Account Titile	Amount
				Income Tax expense	40
					40

	Insurance Expense
	Dr			Cr
Date	Account Titile	A ekkarill92 Next > < Previous Related Solutions During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed... During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $2,500 July 5 Paid the premium on a 1-year insurance policy, $3,600 July 7 Purchased supplies on account from Little Company, $700. July 10 Paid employee salaries, $2,800... During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed... During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $2,500 July 5 Paid the premium on a 1-year insurance policy, $3,600 July 7 Purchased supplies on account from Little Company, $700. July 10 Paid employee salaries, $2,800... During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,      ... During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation,                                           completed the following transactions.                                                                                      July 1   Began business by making a deposit in a company bank account of $60,000, in exchange                                          for 6,000 shares... Requirement #1: During its first month of operation, the Quick Tax Corporation, which specializes in tax... Requirement #1: During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 3 Paid the current month's rent, $2,500 July 5 Paid the premium on a 1-year insurance policy, $3,600 July 7 Purchased supplies on account from Little Company, $700. July 10 Paid employee... Tom Smith opend a repair business on may 1 2017, called Smith Repairs. During the first... Tom Smith opend a repair business on may 1 2017, called Smith Repairs. During the first month of opertaions the firm had the following transactions. May 1 invested 20,000 in cash in the business May 2 paid rent for 900 May 5 Purchased office suppiles with cash 300 May 8 Bought equipment for 8,000 on accountant may 12 performed services for 5,000 in Cash may 19 paid electric bill 250 may 20 paid 1200 for a one year insurance policy... During the first month of its current fiscal year, Green Co. incurred repair costs of $19,000... During the first month of its current fiscal year, Green Co. incurred repair costs of $19,000 on a machine that had 4 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $169,000 for the current year. Required: a. Assuming that Green Co. took a full year's straight-line depreciation expense in the current year, calculate the operating income that should have been reported for the current year. b. Assume that Green Co.'s total... During the first month of its current fiscal year, Green Co. incurred repair costs of $16,000... During the first month of its current fiscal year, Green Co. incurred repair costs of $16,000 on a machine that had 4 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $164,000 for the current year. Required: a. Assuming that Green Co. took a full year's straight-line depreciation expense in the current year, calculate the operating income that should have been reported for the current year. Operating Income b. Assume that Green... During the first month of its current fiscal year, Green Co. incurred repair costs of $24,000... During the first month of its current fiscal year, Green Co. incurred repair costs of $24,000 on a machine that had 4 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $164,000 for the current year. a. Assuming that Green Co. took a full year's straight-line depreciation expense in the current year, calculate the operating income that should have been reported for the current year. b. Assume that Green Co.'s total assets... Emily Valley is a licensed dentist. During the first month of operation of her business, the... Emily Valley is a licensed dentist. During the first month of operation of her business, the following events and transactions occurred. Journalize transactions, post, and prepare a trial balance. Apr.    1   Invested $20,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $700 per week, payable monthly. 2 Paid office rent for the month of $1,100. 3 Purchased dental supplies on account from Dazzle Company of $4,000. 10 Performed dental services and billed insurance companies $5,100. 11 Received... Vera Ernst is a licensed dentist. During the first month of the operation of her business,... Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April 1 Invested $18,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $500 per week payable monthly. 2 Paid office rent for the month $1,200. 3 Purchased dental supplies on account from Dazzle Company $3,700. 10 Performed dental services and billed insurance companies $4,800. 11 Received $1,400 cash advance from Leah Mataruka for an... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and... An investment project costs $20,100 and has annual cash flows of $4,400 for six years.   ... PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following... Draw a DFA for the following ( ∑ = {0,1}):                                 Set of all strings with. In the article from Forbes notes that the goal of a leader is not to clone... Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,... UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you... ADVERTISEMENT About @ 2020 WizEdu